Cornell School Board approved the district's 2008-09 budget last week with a 1.19-mill tax increase, but most residents won't see that increase in their bill.

Many property owners will receive a break on their real estate taxes for 2008-09 because of gambling proceeds.

Out of 2,899 property owners in the Cornell School District, 53 percent (1,537) applied for and were approved through the Homestead Act and will receive a $165.63 discount.

Pat Berdine, business manager, said next year that discount most likely will change as more and more residents become aware and apply.

Even with the millage increase, to 22.93 mills, most will see a reduction in their bill.

Berdine emphasized that property owners will not receive a check. The amount will be deducted from their tax bill.

Berdine said earlier that the millage increase is the maximum Cornell is permitted to raise taxes without a referendum.

He said the increase is necessary because of a possible deficit left over from this year and an increase in cyber school, special education costs and stricter guidelines in what is covered with medical assistance.

Natural gas prices and electricity costs are going up significantly even though Cornell is involved in a consortium plan.

However, he told the board earlier this month that a federal program providing funds for reading materials has doubled.

The funds must be spent, or they have to be sent back, and he said he hopes that Cornell will be able to get some extra technology out of that funding.

At this point, projected revenues are $10,773,909, and expenditures are $10,667,001.

Berdine said, as of June 30, 2007 Cornell's budget ended with a deficit of $133,325, and the June 30, 2008, figure is undetermined at this time.

"I am hopeful that we can eliminate the above deficit in the current fiscal year.

The excess revenue over expenditures in the 2008/2009 budget is intended to offset whatever deficit (if any) is remaining from 2007-2008 and carry forward to the next year for unforeseen expenditures."

Berdine said salaries and benefits haven't hurt the budget this year, with an overall increase of about $60,000 and a 6-percent increase in health insurance.

He also said the budget is pretty much cut as much as it can be.

The only other place to cut, he said, would be athletics, extracurricular activities and supplies.